You can move your "My Documents", but as for the "Program Files" directory... If you move it, then all the registry keys will point to the old location, so you wont be able to use most programs... Also some of the files wont allow you to copy them and others wont allow you to overwrite them!!!
I used to use Norton Ghost 2003 for system backups, but I kept on getting error messages and it would crash... So I now use "Acronis True Image 8.0" which works like a dream... I can backup my whole system within 1 hour and recover the entire system within 20 minutes.... click here to find out what you can do with Acronis True image, and how to buy/download the trial!!!